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vat fraud

17 Years at her Majesty's pleasure

Dilawar Ravjani is starting his 17 years jail term for his part in masterminding a complex tax scam which has resulted in tax lost of £107m. Other members of his 15 strong gang have received sentances of up to11 years for their parts in the fraud.

The fraud involved making ficticious VAT reclaims on high end mobile phones often with the phones not existing. It was estimated the fraud involved sales of £1.7bn  which equated to £176m of VAT, although action by HMRC inspectors resulted in the actual tax lost being £107m, which HMRC are trying to reduce through asset seizures.

Carousel VAT fraud is often refered to as missing trader fraud and involves goods being passed around linked companies in a chain with fake business transactions being created in order to claim large amount of VAT.